You Are a Rising Star in the Purchasing Department at Your

question 49

Multiple Choice

You are a rising star in the purchasing department at your company and you have recently been promoted to manager of business services procurement. As your title suggests, you will be responsible for purchasing business services for your firm. Required:
Which of the following statements is true regarding your new role?​

• A) ​You will be purchasing raw materials.
• B) ​You will be purchasing MRO supplies.
• C) ​You will be purchasing component parts.
• D) ​You will be purchasing janitorial services.
• E) ​You will be purchasing process materials.

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Definitions:

Treasury Stock

Shares that were once in circulation but were bought back by the issuing company, decreasing the amount of stock outstanding.

Par Common Stock

The nominal or face value assigned to a share of common stock by the company's corporate charter.

Fair Market

The price at which an asset would change hands between a willing buyer and a willing seller, both having reasonable knowledge of the relevant facts.

Total Assets

The total value of everything a company owns, encompassing both current assets and long-term assets.